Cenvat credit refund cannot be denied merely because export goods were not removed directly from the claimant's factory.

Refund of accumulated Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002 cannot be denied merely because the exported goods were not cleared directly from the claimant's factory, so long as export is otherwise established and the credit remains unutilised. The CESTAT treated the rule as pari materia with the earlier refund provision and followed the same principle, finding the contrary view inconsistent with that approach and noting no binding contrary decision. On that basis, the refund claims were held maintainable and the denial of relief was set aside.

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Issues: Whether refund of accumulated Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002 could be denied on the ground that the export goods were not removed from the appellant's factory.

Analysis: The Rule was held to be pari materia with the earlier refund provision considered in the cited Tribunal decision. The relevant principle accepted was that refund cannot be denied merely because the export goods were not cleared directly from the claimant's own premises, so long as the goods were ultimately exported and the credit remained unutilised. The contrary view taken in the impugned order was found inconsistent with that principle, and no binding contrary decision was shown.

Conclusion: The refund claims were held to be maintainable and not deniable merely because the export goods were not removed from the appellant's factory, and the order denying relief was set aside in favour of the assessee.

Ratio Decidendi: Under Rule 5 of the Cenvat Credit Rules, 2002, refund of unutilised accumulated Cenvat credit cannot be denied solely because the exported goods were not cleared directly from the claimant's premises, where the export of the goods is otherwise established.

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